Every month of June since 2014 has been a reverse to the
down side for GBP/USD. The candle that closed this week
seems to signal a reversal confirmation to this trend by
having found support at the lows of June 2016, thus,
indicating a bullish trend continuation.
Further confirmation for a bullish reversal can be seen in the
MACD divergence, as well as renewed oversold conditions
on the Stochastic oscillator. Also, the 100SMA is now acting
as support below current price and has been leveling out
after the double top above was formed. It now looks
that GBP/USD is getting ready for stage two of its bullish
reversal which commenced at the beginning of 2017.
Nonetheless, one still needs to be aware of volatility
before entering a long term trade to the upside, however,
technically all the signs point to the upside. A close
above 1.3533 would be the safest confirmation to go long
for the 'long' term.
Happy trading
down side for GBP/USD. The candle that closed this week
seems to signal a reversal confirmation to this trend by
having found support at the lows of June 2016, thus,
indicating a bullish trend continuation.
Further confirmation for a bullish reversal can be seen in the
MACD divergence, as well as renewed oversold conditions
on the Stochastic oscillator. Also, the 100SMA is now acting
as support below current price and has been leveling out
after the double top above was formed. It now looks
that GBP/USD is getting ready for stage two of its bullish
reversal which commenced at the beginning of 2017.
Nonetheless, one still needs to be aware of volatility
before entering a long term trade to the upside, however,
technically all the signs point to the upside. A close
above 1.3533 would be the safest confirmation to go long
for the 'long' term.
Happy trading